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[return to "Elon Musk sues Sam Altman, Greg Brockman, and OpenAI [pdf]"]
1. silico+z11[view] [source] 2024-03-01 17:11:23
>>modele+(OP)
There is a lot in here but turning a non-profit into a for-profit definitely should be challenged. Otherwise why wouldn't everyone start as a non-profit, develop your IP, and then switch to 'for-profit' mode once you got something that works? You don't pay income taxes and your investors get write offs.
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2. emoden+P21[view] [source] 2024-03-01 17:16:08
>>silico+z11
They didn't "turn it into" a for-profit though, they created a separate for-profit arm. This one is unusually successful but that's not an unusual thing for even "regular" charities to do in order to engage in some activities that they wouldn't normally be able to.
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3. cush+P71[view] [source] 2024-03-01 17:37:10
>>emoden+P21
> in order to engage in some activities that they wouldn’t normally be able to

What activities couldn’t they do with their charity arm that required this for-profit arm?

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4. emoden+pb1[view] [source] 2024-03-01 17:54:05
>>cush+P71
I'm not sure specifically in OpenAI's case but the general answer is any activity that would cause the organization to lose tax-exempt status.
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